Legalizing Marijuana Could Generate $500 Million Annually for Texas

A recent report by Vicente Sederebeg LLP shows that Texas could garner upwards of $500 million annually in tax revenue if the state legalizes marijuana. But this could be an uphill battle.

The state is falling behind the times since Governor Abbott banned the sale of smokable hemp flower, the Dallas Observer noted. It’s a bit step backwards considering this latest report shows over 1.5 million regular adult marijuana users in the state. The state is missing out on about $2.7 billion in sales revenue annually by not legalizing marijuana.

Shawn Hauser of Vicente Sederberg said, “Hundreds of millions of dollars in new tax revenue and tens of thousands of new jobs would be especially helpful in overcoming the losses stemming from the COVID-19 pandemic. Texas is leaving an enormous amount of money on the table by keeping cannabis illegal.”

Dwight Clark of Vicente Sederberg said, “If cannabis were regulated, the revenue from license fees and taxes would easily cover the costs of administrating the system and enforcing regulations. Criminal justice resources could then be redirected toward other, more pressing matters.”

Legalizing marijuana in Texas could create thousands of jobs and help bring in necessary tax revenue for the state to help itself recover from the economic hardships of the pandemic. Texas is still experiencing an above average percentage of unemployed individuals.